Quotulatiousness

February 3, 2012

The end of London’s diesel locomotive plant

Filed under: Cancon, Economics, Railways — Tags: , , , , — Nicholas @ 12:10

I’ve updated my earlier post on the labour dispute at London’s EMC plant now that the current owners have announced the closure of the facility.

Update, 5 February: Mike P. Moffatt at Worthwhile Canadian Initiative debunks some of the media coverage of the closure:

After the U.S.-Canada Free Trade Agreement, GM Diesel closed their La Grange, Illinois plant and consolidated their production to the London plant, though kept the head office, research, design, and manufacturing of some components in La Grange. EMD London was a direct beneficiary of the U.S.-Canada Free Trade agreement, something I have yet to hear in the media. The domestic locomotive market, by itself, would not have supported the level of production we have seen over the last two decades.

In 2005, GM Diesel sold the Electro-Motive Division (including the GM Diesel plant in London and the head office in La Grange) to a couple of U.S. private equity firms, who re-named it Electro-Motive Diesel. In 2010, those firms sold EMD to Caterpillar.

[. . .]

We need to keep in mind that:

  1. EMD has always been a U.S. corporation.
  2. The intellectual property from research and design, etc. was from the head office in La Grange, Illinois.

So that leaves “know-how” which Cohn mentions in a follow-up paragraph. On Twitter, Colby Cosh asked: “Cohn talks about “know-how” but (a) know-how isn’t IP and (b) Cat doesn’t seem to have much use for the workers who have it, do they?” Caterpillar, however, did send a number of employees from London to their new plant in Muncie, IN, to train newly hired workers. I am Facebook friends with an EMD worker and I remember him objecting loudly to this last fall. But did Caterpillar really buy EMD so that it could obtain the talents of a dozen guys to teach advanced welding techniques?

There are a lot of narratives to this story, many of them unpleasant. A narrative about a U.S. company buying Canadian IP at 15 cents on the dollar does not pass the sniff test, however.

Update the second, 7 February: Andrew Coyne gets his inconvenient, yucky facts in our lovely flag-waving, anti-capitalist nationalistic fantasy:

EMD never received any subsidies from the federal government; certainly not since Caterpillar bought it. Indeed, looking through the hundreds of pages of “grants and contribution” in the Public Accounts, it may be the only company in the country that didn’t. The Harper visit to which Olive refers was to promote a tax break for the purchasers of locomotives, not the manufacturers. The visit occurred in 2008, two years before the Caterpillar purchase.

It’s not clear how the foreign investment laws could have been invoked to cover a purchase of an American company by another American company, or if they could, why this should be the pretext for “demanding job guarantees.” Presumably if it is wrong for a firm to close a plant or lay off workers, it is just as wrong whether it has recently been the object of a foreign takeover bid or not. Perhaps you will say we should bar all companies from closing a plant. Okay: why would they ever open one? If workers, once hired, cannot ever be laid off, why would they ever be hired?

Of course, there’s always Olive’s suggestion of a punitive tariff, through which the cost of keeping jobs in London locomotive plants could be shared by consumers and businesses across the country. (You’re welcome.) This would recreate the system of foreign branch plants that existed in the days before free trade, small factories producing exclusively for the domestic market. Rather than lament at foreigners stealing our jobs and technology, the nationalists could once again lament at being tenants in our own land.

January 27, 2012

Megan McArdle finds the right word to describe Obama’s vision: Nostalgianomics

Filed under: Economics, History, Politics, USA — Tags: , , , — Nicholas @ 09:41

In her column in The Atlantic, Megan McArdle points out the extremely ahistorical nostalgia that seems to infuse President Obama’s vision:

Surely Obama’s economic advisors have not told him that they know how to replicate the growth of the 1950s — and if they did, surely the last three years have given the lie to this belief.

I think the speech made it even clearer that other speeches have that the president’s vision of the world is a lightly updated 1950s technocracy without the social conservatism, and with solar panels instead of rocket ships. Government and labor and business working in tightly controlled concert, with nice people like Obama at the reins — all the inventions coming out of massive government or corporate labs, and all the resulting products built by a heavily unionized workforce that knows no worry about the future.

There are obviously a lot of problems with this vision. The first is that this is not what the fifties and sixties were actually like — the government and corporate labs sat on a lot of inventions until upstart companies developed them, and the union goodies that we now think of as typical were actually won pretty late in the game (the contracts that eventually killed GM were written in the early 1970s).

And to the extent that the fifties and sixties were actually like this, we should remember, as Max Boot points out, that this was not actually the day of the little guy. Big institutions actually had a great deal more power than they do now; it was just distributed somewhat differently — you had to worry less about big developers slapping a high-rise next to your single-family neighborhood, and a whole lot more about Robert Moses deciding he wanted to run a freeway through the spot where your house happened to be.

The military model of society — employed by both Obama, and a whole lot of 1950s good government types — was actually a kind of creepy way to live. As Boot says, “America today is far more individualistic and far more meritocratic with far less tolerance for rank prejudice and far less willingness to blindly follow the orders of rigid bureaucracies.” If you want the 1950s except without the rigid conformity and the McCarthyism, then you fundamentally misunderstand what made the 1950s tick.

January 26, 2012

The fate of London’s diesel locomotive plant

Filed under: Cancon, Economics, Media, Politics, Railways — Tags: , , , , , — Nicholas @ 10:38

In the Toronto Star, Martin Regg Cohn (who claims he “is not an anti-globalization crusader”) does his level best to put forward a case for massive government intervention in a labour dispute between Caterpillar and the Canadian Auto Workers:

At the old locomotive plant now owned by U.S.-based multinational Caterpillar Inc., the Canadian Auto Workers union is not even on strike. The CAW has been locked out since New Year’s Day because it refused to sign its own death warrant by agreeing to slash wages in half for most workers from $34 an hour to $16.50.

When a powerful multinational negotiates in bad faith, it becomes a story that governments in Queen’s Park and Ottawa can no longer wash their hands of. To put it in language that resonates with Premier Dalton McGuinty: When a bully tries to humiliate people, you can’t just watch in silence.

When high-paying skilled local jobs can be shredded at the whim of a combative multinational giant, it dramatically undermines all the upbeat rhetoric we hear from McGuinty and Prime Minister Stephen Harper about Canada’s global appeal. It sends a signal that Ontario is not so much open for business as it is closed for unions.

We jump directly from Caterpillar’s demand for wage reductions to an assertion that the company is negotiating in bad faith (I guess, from the union’s point of view, anything other than a wage increase is proof). No indication whether the company’s demand is economically justifed — if sales of the plant’s railway locomotives are as bad as the wage offer implies, then the next step will be closing the plant — just straight over to bad-mouthing the company.

And, of course, it’s merely objective reporting to use pejorative descriptors when discussing the eeeeevil multinational firm. Not content merely to malign the company, he then calls on the Premier to support the union to the hilt:

So what can our anti-bullying premier do?

If I were McGuinty, I would ask myself a simple question: What would Bill Davis do?

The former Tory premier of Ontario wasn’t perfect, but he was always plugged in. He took labour seriously, listened closely to business and wooed foreign investors (remember Renault?). He knew how to leverage the power of the premier’s office to stand up for Ontario’s greater interests.

A phone call to Caterpillar’s corporate braintrust would show that Ontario’s premier is no pushover. If that didn’t work, a phone call to Harper — who is still trying to live down the tax breaks he gave the locomotive factory’s former owners a few years ago — might find a receptive ear.

And finally we get to a good point: the foolishness of governments in giving special tax breaks to certain industries or companies. If it’s in the company’s best interests to locate in your jurisdiction, they’ll probably do it. If you have to bribe them with tax breaks, low-interest or interest-free loans, or other special incentives, then once the incentive runs its course, the company has no further requirement to stay in your location.

Update: In the National Post, Kelly McParland has some suggestions for union leaders:

1. A lot of people (the membership figures suggest it’s the vast majority) think unions are concerned solely with their own members and couldn’t give a bird’s turd for anyone or anything else, including other working stiffs, members of other unions, the fortunes of the company they work for or the customers they deal with. When you display a total lack of interest in others, they generally adopt the same attitude towards you.

[. . .]

4. Union politics might consider moving out of the stone age. The world evolves over time, but unions persist in peddling the same trite bromides as if it’s still the dawn of the industrial revolution. The “us against them” mentality; the pretense that all employers exist to exploit workers and can never be trusted; the assumption that every contract must be succeeded by an even richer one no matter the health of the industry, the economy or the company; the fealty to leftwing political parties — all are symptoms of an exhausted, outdated perspective that has barely changed since “modern technology” meant the telephone.

If unions really want to save themselves, they might take a lesson from the market economy. If no one buys what you’re selling, it’s not because they buyers aren’t bright enough. It’s because people see no value in your product.

Update, 3 February: The plant is being closed. Here’s the official announcement:

Progress Rail Services has announced that it will close Electro-Motive Canada’s (EMC) locomotive production operations in London, Ontario.

Assembly of locomotives will be shifted from the London facility to the company’s other assembly plants in North and South America, which will ensure that delivery schedules are not impacted by the closing of the London facility.

All facilities within EMC, EMD and Progress Rail Services must achieve competitive costs, quality and operating flexibility to compete and win in the global marketplace, and expectations at the London plant were no different.

The collective agreement and cost structure of the London operation did not position EMC to be flexible and cost competitive in the global marketplace, placing the plant at a competitive disadvantage. While the company’s final offer addressed those competitive disadvantages, the gulf between the company and the union was too wide to resolve and as such, market conditions dictate that the company take this step.

January 19, 2012

In spite of the large number of petitioners, recalling Wisconsin’s governor may not be a done deal

Filed under: Economics, Government, Politics, USA — Tags: , , , , — Nicholas @ 12:33

Christian Schneider in City Journal on the efforts underway in Wisconsin to recall Governor Scott Walker:

One morning last February, Wisconsin governor Scott Walker called his staff into his office. “Guys,” he warned, “it’s going to be a tough week.” Walker had recently sent a letter to state employees proposing steps — ranging from restricting collective bargaining to requiring workers to start contributing to their own pension accounts — to eliminate the state’s $3.6 billion deficit. That day in February was when Walker would announce his plan publicly.

It turned out to be a tough year. The state immediately erupted into a national spectacle, with tens of thousands of citizens, led by Wisconsin’s public-employee unions, seizing control of the capitol for weeks to protest the reforms. By early March, the crowds grew as big as 100,000, police estimated. Protesters set up encampments in the statehouse, openly drinking and engaging in drug use beneath the marble dome. Democratic state senators fled Wisconsin to prevent a vote on Walker’s plan. Eventually, the Senate did manage to pass the reforms, which survived a legal challenge and became law in July.

The unions aren’t done yet: they’re now trying to recall Walker from office. To do so, they will try to convince Wisconsin voters that Walker’s reforms have rendered the state ungovernable. But the evidence, so far, contradicts that claim—and Wisconsinites seem to realize it.

The fight between the Governor and the public unions matters more than it may seem: Wisconsin was the first state to allow civil service workers to unionize and has traditionally been seen as a strong union (and therefore also Democratic) state ever since. If unions can have some of their power trimmed back there, it will hearten the efforts of other state governments to follow suit.

January 12, 2012

Toronto Hydro takes hostages, threatens eternal darkness if demands not met

Filed under: Cancon, Politics — Tags: , , , — Nicholas @ 12:05

Ah, it must be the time of year for Toronto Hydro to lose its collective shit and start the crazy talk:

Last week, the Ontario Energy Board denied Toronto Hydro’s request for a rate hike for homes within the city limits. The hike, which would have meant a monthly increase of five dollars for a typical household, was necessary, Toronto Hydro said, to renew the city’s electrical transmission grid. Failure to do so, they warned, could result in more, and longer, blackouts.

Not so, the Energy Board ruled. They said that Toronto Hydro had not demonstrated that Toronto’s power grid needed the kind of urgent repairs that were being proposed, and also chided Toronto Hydro for failing to make necessary productivity gains, implying that the requested money was not so much about urgent repairs as needing more cash. Toronto Hydro’s response has been swift: 700 contractors have been let go, and 20% of its workforce is being told that they’re next — that’s another 350 or so jobs. Oh, and without the cash, the city is probably going to go dark.

Do these guys know how to play hardball or what?

December 7, 2011

Harsanyi: Obama is “the mighty slayer of infinite straw men”

Filed under: Economics, History, Politics, USA — Tags: , , , , , , — Nicholas @ 09:18

While the GOP hopefuls are busy avoiding confrontation with Barack Obama, David Harsanyi is under no such restriction:

In Teddy Roosevelt’s era, President Barack Obama explained to the nation this week, “some people thought massive inequality and exploitation was just the price of progress. … But Roosevelt also knew that the free market has never been a free license to take whatever you want from whoever you can.”

And he’s right. Even today there are people who believe they should have free license to take whatever they want from whomever they can. They’re called Democrats.

Yet the president, uniter of a fractured nation, the mighty slayer of infinite straw men, claims that some Americans “rightly” suppose that the economy is rigged against their best interests in a nation awash in breathtaking greed, massive inequality and exploitation. Or I should say, he’s trying to convince us that it’s the case.

The middle-class struggle to find a decent life is the “defining issue of our time,” the president went on. And nothing says middle-class triumph like more regulation, unionism, cronyism and endless spending. Hey, Dwight Eisenhower (a Republican!) built the interstate highway system, for goodness’ sake. Ergo, we must support a bailout package for public-sector unions — you know, for the middle class.

Update: Monty goes a few steps further to criticize Obama:

It often strikes me how much Barack Obama looks, talks, behaves, and (apparently) believes like a character out of an Ayn Rand novel. Rand always wrote of statist Socialists more as caricatures than characters, but Barack Obama could have stepped whole and breathing right out of the pages of Atlas Shrugged. Which shows you the shallowness and unthinking obeisance to leftist cant the man displays — there is precious little subtlety to Barack Obama. You sometimes find hidden depths even in your ideological enemies, surprising pockets of common ground. But in Barack Obama, there is only a hollow vessel filled up with the thoughts and opinions of leftists he has associated with in his life. He speaks (and apparently thinks) only in platitudes, bromides, and cliches. Barack Obama is, in short, the end product of the grand “progressive” experiment since the early 1900’s. Ecce homo!

December 2, 2011

Biggest general strike since 1926 becomes a “damp squib”

Filed under: Britain, Government, History, Media — Tags: , , , , , , — Nicholas @ 08:07

Some sense the evil hand of . . . Jeremy Clarkson?

It was to be the biggest strike in a generation. People were openly and unabashedly comparing Wednesday’s day of action over public sector pensions to the general strike of 1926. It was to bring Britain to a standstill. Mark a turning point in the battle against the cuts instigated by the spawns of the evil Iron Lady. Become a talking point that would strike fear into the cold heart of Cameron and pave the way to bigger, more decisive action.

Except, erm, the very next morning it had been almost completely forgotten. It barely registered as a blip on BBC Radio 4’s flagship Today programme. Newspaper coverage was on the whole sympathetic, but slight. None of the predicted chaos came to pass. Prime minister Cameron could quite safely dismiss the strike as a ‘damp squib’ and provoke few comments except from the usual suspects. People shrugged and went back to work. Far from being a Great Event like the 1926 strike that people would draw inspiration from in 85 years time, it was barely discussed. As my colleague Brendan O’Neill had anticipated, it all felt more like a ‘loud and colourful PR stunt ultimately designed to disguise the fact that, in truth, trade unions are a sad shadow of their former selves’.

Just as the PR flames were beginning to dim, however, enter Jeremy Clarkson, the cartoonish presenter of Top Gear, who sped to the rescue with a particularly naff joke about the strikers being shot in front of their families. Of course, he didn’t actually mean it. In the context of the programme, BBC1’s The One Show, his remarks were actually more a dig at the BBC: he had in fact been praising the strikers (‘London today has just been empty. Everybody stayed at home, you can whizz about… it’s also like being back in the 70s. It makes me feel at home somehow.) but then said, as it was the Beeb, he had to provide ‘balance’, making his now notorious quip: ‘Frankly, I’d have them all shot. I would take them outside and execute them in front of their families. I mean, how dare they go on strike when they have these gilt-edged pensions that are going to be guaranteed while the rest of us have to work for a living?’

Update: James Delingpole said he’s been flooded with interview requests since the strike began, largely because of the public’s reaction to the strike:

I got my answer from a chance remark made by Jeremy Vine after our interview. He was telling me about the phone-in he’d done the day before during the public sector workers’ strike and what had astonished him was the mood of the callers. If I remember what he said correctly, one of his studio guests was a nurse on a £40,000 PA salary, with a guaranteed £30,000 pension, and this had not gone down well with the mother-of-three from Northern Ireland struggling as a finance officer in the private sector on a salary of £14,000 and no pension to speak of. The callers were very much on the side of the private sector. In fact, they were on the whole absolutely apoplectic that privileged, relatively overpaid public sector workers with their gold-plated pensions should have the gall to go out on strike when the people who pay their salaries – private sector workers – have to go on slogging their guts out regardless.

[. . .]

After all, as Fraser Nelson reports, the strike itself was a massive flop. Only a minority of union members voted it for it; the turn-out was so poor that the unions felt compelled to send out hectoring letters accusing their membership of being “scabs”; the hospitals – and many schools – stayed open, Heathrow’s immigration queues actually got shorter. This was not the glorious day of action (or inaction) that the militants had hoped for. Nor did it fit into the BBC’s ongoing narrative that Osborne’s vicious cuts (what cuts, we ask) are causing such hardship and misery among the saintly frontline public sector workers who bravely rescue our cats from trees and smilingly change our bed pans that really a Labour government run by Ed Balls is the only option.

Not only were the strikes a failure in numbers terms, though, but more damagingly they were a failure in propaganda terms. As both Fraser Nelson and Jeremy Vine have noted, there really has been a shift in public mood. I remember not more than a year ago going on Vine’s show to state, somewhat provocatively that I’d rather toss my children out on the street than have them sponging off the taxpayer in the public sector, and of course the mainly left-leaning BBC audience went apoplectic. I think if I’d gone on and said the same thing today they would probably have been demanding a statue erected in my honour in Parliament Square.

November 6, 2011

Redefining “anarchism” to mean “statism”

Filed under: Government, Liberty, Media, USA — Tags: , , , , , — Nicholas @ 12:41

Mark Steyn in the Orange County Register:

I don’t “stand with the 99%,” and certainly not downwind of them. But I’m all for their “occupation” continuing on its merry way. It usefully clarifies the stakes. At first glance, an alliance of anarchists and government might appear to be somewhat paradoxical. But the formal convergence in Oakland makes explicit the movement’s aims: They’re anarchists for statism, wild free-spirited youth demanding more and more total government control of every aspect of life — just so long as it respects the fundamental human right to sloth. What’s happening in Oakland is a logical exercise in class solidarity: the government class enthusiastically backing the breakdown of civil order is making common cause with the leisured varsity class, the thuggish union class and the criminal class in order to stick it to what’s left of the beleaguered productive class. It’s a grand alliance of all those societal interests that wish to enjoy in perpetuity a lifestyle they are not willing to earn. Only the criminal class is reasonably upfront about this. The rest — the lifetime legislators, the unions defending lavish and unsustainable benefits, the “scholars” whiling away a somnolent half-decade at Complacency U — are obliged to dress it up a little with some hooey about “social justice” and whatnot.

[. . .]

America is seizing up before our eyes: The decrepit airports, the underwater property market, the education racket, the hyper-regulated business environment. Yet, curiously, the best example of this sclerosis is the alleged “revolutionary” movement itself. It’s the voice of youth, yet everything about it is cobwebbed. It’s more like an open-mike karaoke night of a revolution than the real thing. I don’t mean just the placards with the same old portable quotes by Lenin et al, but also, say, the photograph in Forbes of Rachel, a 20-year-old “unemployed cosmetologist” with remarkably uncosmetological complexion, dressed in pink hair and nose ring as if it’s London, 1977, and she’s killing time at Camden Lock before the Pistols gig. Except that that’s three-and-a-half decades ago, so it would be like the Sex Pistols dressing like the Andrews Sisters. Are America’s revolting youth so totally pathetically moribund they can’t even invent their own hideous fashion statements? [. . .]

At heart, Oakland’s occupiers and worthless political class want more of the same fix that has made America the Brokest Nation in History: They expect to live as beneficiaries of a prosperous Western society without making any contribution to the productivity necessary to sustain it. This is the “idealism” that the media are happy to sentimentalize, and that enough poseurs among the corporate executives are happy to indulge — at least until the window smashing starts. To “occupy” Oakland or anywhere else, you have to have something to put in there. Yet the most striking feature of OWS is its hollowness. And in a strange way the emptiness of its threats may be a more telling indictment of a fin de civilization West than a more coherent protest movement could ever have mounted.

November 1, 2011

Long Island Rail Road: “The scandal isn’t what’s illegal — but what’s legal“

Filed under: Law, Politics, Railways, USA — Tags: , , , , — Nicholas @ 12:37

Nicole Gelinas points out that the Long Island Rail Road (LIRR) pension scam is only part of the problem:

Last week, the feds indicted 11 Long Island Rail Road retirees and their alleged associates in a “massive fraud scheme” to steal a billion dollars through fake disability claims. But the bigger outrage is that for decades the LIRR has held state taxpayers and riders hostage — thanks to outdated Washington labor laws.

The first inkling of the scandal came in 2008, when a press report noted that nearly every LIRR worker retired early, getting an MTA pension and a federal benefit. Looking into the anomaly, federal prosecutors unearthed evidence that at least two doctors and other “facilitators” had for years signed off on fake injuries and ailments so that workers could take their pensions.

[. . .]

The state’s fear of an LIRR strike helps drive up the railroad’s costs. Last year, the Empire Center reported, the average LIRR worker pulled in $84,850 — not including benefits.

That’s more than anywhere at the MTA except headquarters — and 23 percent more than subway and bus workers make. Seven of the top 10 people who made more in overtime than they did in regular wages hailed from the LIRR — including one conductor who tripled his $75,390 salary. Plus, workers pay nothing for health benefits.

August 29, 2011

Kaus: Ten things Obama should have done differently

Filed under: Economics, Government, Politics, USA — Tags: , , , , — Nicholas @ 12:09

Mickey Kaus thinks the President would have been much better off (and the US economy too) if he’d done several things differently:

Excessively well-sourced Obama boosters are now channeling, not just White House spin but White House self-pity. Both Ezra Klein and Jonathan Alter wonder aloud why our intelligent, conscientious, well-meaning, data-driven President is taking a “pummeling.” ”What could Obama have done?” (Klein) “What, specifically, has he done wrong .. .?” (Alter)

They’re kidding, right? There are plenty of things Obama could have done differently. Most of these mistakes were called out at the time. Here, off the top of my head, are ten things Obama could have done:

[. . .]

3. Made the UAW take a pay cut. Whoever else is to blame, the UAW’s demands for pay and work rules clearly contributed to the need for a taxpayer-subsidized auto bailout. To make sure that future unions were deterred from driving their industries into bankruptcy, Obama demanded cuts in basic pay of … exactly zero. UAW workers gave up their Easter holiday but didn’t suffer any reduction in their $28/hour base wage. Wouldn’t a lot of taxpayers like $28 hour jobs? Even $24 an hour jobs?

[. . .]

5. Not pursued a zombie agenda of “card check” and “comprehensive immigration reform”–two misguided pieces of legislation that Obama must have known had no chance of passage but that he had to pretend to care about to keep key Democratic constituencies on board. What was the harm? The harm was that these issues a) sucked up space in the liberal media, b) made Obama look feckless at best, delusional at worst, when they went nowhere; c) made him look even weaker because it was clear he was willing to suffer consequence (b) in order to keep big Democratic constituencies (labor, Latinos) on board.

6. Dispelled legitimate fears of “corporatism” — that is, fears that he was creating a more Putin-style economy in which big businesses depend on the government for favors (and are granted semi-permanent status if they go along with the program). I don’t think Obama is a corporatist, but he hasn’t done a lot to puncture the accusations. What did electric carmaker Tesla have to promise to get its Dept. of Energy subsidies? Why raid GOP-donor Gibson’s guitars and not Martin guitars? We don’t know. At this point, you have to think the president kind of likes the ambiguity–the vague, implicit macho threat that if you want to play ball in this economy, you’re better off on Team Obama. That’s a good way to guarantee Team Obama will be gone in 2013.

Oh, and for a bonus bit of unwelcome news for President Obama, his uncle has just been arrested for drunk driving. His illegal alien uncle, who now faces deportation.

August 24, 2011

Australian government risks defeat over MP’s brothel expenses

Filed under: Australia, Government, Politics — Tags: , , , — Nicholas @ 09:40

Australian politics are so much more interesting than our boring old Canadian version:

A political scandal involving alleged payments to prostitutes by an MP, which threatens Australia’s minority government, deepened on Wednesday when the politician’s former union asked police to investigate his union credit card bills.

The move by the Health Services Union (HSU) increases the likelihood that police will launch a criminal investigation into the union’s former boss Craig Thomson over alleged payments using credit cards to a Sydney brothel.

Thomson, who is now an government MP, has denied any wrongdoing. But if he is charged with a criminal offence and then found guilty, he would be forced to leave parliament, prompting a by-election that could bring down Julia Gillard’s government, which has a one-seat majority.

March 18, 2011

Adrian Peterson changes the tone, but not in a good way

Filed under: Football, Media — Tags: , , — Nicholas @ 13:01

Tom Powers thinks that Adrian Peterson has accomplished what many thought to have been impossible: improving the public view of the NFL owners.

With one slip of the tongue, Adrian Peterson irrevocably has altered public perception with regard to the NFL labor situation. A.P. has accomplished the seemingly impossible: He has made the bad guys look good. Or at least better.

Suddenly, NFL owners, the greediest group of cutthroat, self-indulgent operators since Al Capone’s gang ran roughshod over Chicago, stand in a more favorable public light. And they can wave a disapproving finger at the players and announce to the fans: “Now do you see what we’re dealing with here?”

The other day, Peterson called the owners’ treatment of the players “modern-day slavery.” He was making a lot of sense right up until he uttered those magic words. He had talked about the unmitigated greed of the owners and about how they were trying to wring more money from their employees. Then he made the slavery comparison. Since A.P. is due a base salary of close to $11 million next season, it’s not hard to imagine how all the working stiffs out there viewed those comments.

Because of the impasse, Powers now thinks the best solution is pretty drastic:

It’s too bad because, make no mistake about it, if NFL football goes missing this fall, it’s the owners’ doing and not the players.’ The players are the good guys in these negotiations.

Their careers are short. They get beat up more than any other athletes. They have lingering injuries that hamper them for the rest of their lives. Meanwhile, the filthy-rich owners want a bigger percentage of the revenue pie. In fact, they want a big fat slice right off the top.

OK, what’s done is done. Now everybody looks bad. And just like the 1994 negotiations that almost killed baseball, both sides are so busy trying to gouge each other that they are displaying precious little regard for the cash customers who, in reality, fund the whole damn operation. They are the ones who buy the tickets and merchandise. They are the ones who send the TV ratings — and thus the advertising revenue — through the roof.

So now I think the best thing that could possibly happen is for the NFL to disappear for a year. I hope the labor negotiations reach an impasse and the season is canceled. Then maybe reality will set in for all concerned. The mighty need to be humbled. In a year, with luck, they’ll all realize that the sun doesn’t rise and set on their fannies. They’ll realize that everyone survived just fine without them. And then maybe they won’t take it all for granted anymore.

Ignoring death threats to politicians (but only on the right)

Filed under: Liberty, Media, Politics, USA — Tags: , , , , — Nicholas @ 10:16

An interesting article at the Huffington Post on the relative media silence on the spate of death threats against Wisconsin politicians:

Why isn’t the mainstream media talking about the death threats against Republican politicians in Wisconsin?

Try to set aside whatever biases or preconceptions you might have for a moment and ask yourself why death threats against politicians aren’t considered national news, especially in the wake of the all too fresh shooting of Rep. Gabrielle Giffords and other bystanders. And there hasn’t just been one death threat, but a number of them.

Here’s an example and it’s real. According to Wisconsin State Department of Justice, authorities have found a suspect who admitted to sending the following email:

I want to make this perfectly clear. Because of your actions today and in the past couple of weeks I and the group of people that are working with me have decided that we’ve had enough. We feel that you and your republican dictators have to die. This is how it’s going to happen: I as well as many others know where you and your family live, it’s a matter of public records. We have all planned to assult you by arriving at your house and putting a nice little bullet in your head. However, this isn’t enough. We also have decided that this may not be enough to send the message. So we have built several bombs that we have placed in various locations around the areas in which we know that you frequent. This includes, your house, your car, the state capitol, and well I won’t tell you all of them because that’s just no fun. Since we know that you are not smart enough to figure out why this is happening to you we have decided to make it perfectly clear to you. If you and your goonies feel that it’s necessary to strip the rights of 300,000 people and ruin their lives, making them unable to feed, clothe, and provide the necessities to their families and themselves then We will “get rid of” (in which I mean kill) the 8 of you. Please understand that this does not include the heroic Senator that risked everything to go aganist what you and your goonies wanted him to do. The 8 includes the 7 senators and the dictator. We feel that it’s worth our lives becasue we would be saving the lives of 300,000 people. Please make your peace with God as soon as possible and say goodbye to your loved ones we will not wait any longer. Goodbye ASSHOLE!!!!

After the Giffords shooting, authorities have to take this sort of threat seriously. The media should too, even if the disturbed person who sent that email was motivated by exactly the kind of rhetoric that’s been used by many liberals against GOP officials over and over again during the Madison protests. And there are more threats floating around the internet, in varying degrees of scary and credible.

The Google search for the string “Wisconsin death threats” only returned 704 results for me this morning, and the only major media outlets represented on the first page were the Chicago Sun-Times and Fox News.

March 17, 2011

Police and fire unions threaten to “boycott” businesses that support Wisconsin governor

Filed under: Government, Law, Liberty, Politics, USA — Tags: , , , — Nicholas @ 10:00

You’ve got a nice office here, guv. Shame if anything were to happen to it, y’know?

Here is another reason public unions should not be allowed to collectively bargain with politicians running a local or state government. Union leadership — including those from law enforcement and firefighters — have sent letters out to local businesses demanding they publicly oppose the efforts of Wisconsin’s legislature and governor or face the consequences.

Not only are they suggesting they publicly oppose the fiscal-sanity measures in Wisconsin, they are flat out telling them they will publicly boycott businesses who do not proactively do so. From James Taranto’s opinion piece in the Wall Street Journal yesterday.

In the letter to Wisconsin businessmen, however, we see why so-called collective bargaining is particularly corrupting to the police. Although the letter explicitly threatens only an economic boycott, when it is written on behalf of the police — of those on whom all citizens depend to protect their safety — it invariably raises the prospect of another kind of boycott. Can a businessman who declines this heavy-handed “request” be confident that the police will do their job if he is the victim of a crime — particularly if the crime itself is in retaliation for his refusal to support “the dedicated public employees who serve our communities”?

LauraW clarifies the message here:

We’re the Police and Firefighters Unions.

If you don’t accede to our demand, we’ll put you on The Naughty List. And, um….boycott you. That’s our threat. We’ll boycott you. That’s all.

Right.

…did we forget to mention that we are cops and firefighters?
Just checking. Making sure you caught that.

H/T to Jon for the link.

March 14, 2011

Government debt: “U.S Treasuries increasingly look like Wile E. Coyote running in midair; they’ll keep selling only as long as nobody actually looks down”

Filed under: Economics, Government, USA — Tags: , , , , , — Nicholas @ 16:17

To borrow a phrase from Monty at Ace of Spades HQ, here’s a hot steaming bolus of DOOM for you, courtesy of Eric S. Raymond:

Insolvency is no longer a sporadic problem, it’s become pervasive at all levels of government everywhere. This is why the recent brouhaha in Wisconsin was so surreal. The public-employee unions weren’t just rearranging the deck chairs on a sinking Titanic, they were fighting to preserve their right to bore more holes in the hull.

When these are the objective conditions, what point is there in arguing that the whole system is corrupt and that middle-class entitlements have to go on the scrap-heap along with every other big-government program? It’s going to happen anyway soon enough. A year ago the U.S. government was only taking in a third of what it needed to cover annual outlays; today it’s so much worse that individual monthly deficits are larger than the entire Bush administration’s. The money’s all gone. Our options are closing down to default or hyperinflation.

It’s going to get ugly out there. A lot of old people are either not going to get their pensions and Social Security at all or get them in hyperinflated dollars that won’t be worth anything. Anyone else dependent on government transfer payments will be similarly screwed. Urban poor, farmers, veterans, the list goes on. Imagine the backlash when that really hits — when it sinks in that the promises were lies, the bubble has popped, the Ponzi scheme is over.

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